Tuesday, November 25, 2003
The latest contact DRAM prices negotiated for the second half of November continued to drop an average of 4% to 5%, according to DRAMeXchange, Taipei. This followed a 5% to 6% drop in DRAM spot market prices, which Smith Barney analyst Clark Westmont said was the biggest single weekly decline in seven months.
DRAMeXchange reported new contract prices for emerging DDR400 SDRAM ranged from a low of $4.81 to a high of $5.19, down from $5.25 to $5.69 in the first half of October. Contract prices for both DDR226 and DDR333 ranged between $4.63 and $5, down from $5.06 to $5.69 in the first half of October.
Contract pricing for legacy single data rate 128Mbit SDRAM dropped to $2.30 to $2.55 from $2.56 to $2.75 in October.
Westmont said DRAM contract prices were following the spot market lower. "While the gap between contract and spot prices has slightly narrowed in the past three contract negotiation rounds, we feel the spot and contract prices are still too divergent," he said. "From this point forward we anticipate that DRAM contract pricing will likely head lower."
On the spot market, DRAM started this week lower, with DDR400 well below contract ASPs at an average of $4.08 and DDR333 at an average $4.01. Both were down from the first half of October spot prices of $4.32 for DDR400 and $4.33 for DDR333. By contrast, legacy 128-Mbit SDRAM held steady at an average of $2.46, at the midrange of contract pricing for the part.
"Strength in SDRAM is due to continuing legacy and networking demand, combined with limited supply levels," Westmont said. "However, this is generally a small portion of the mainstream PC-driven DRAM consumption."
By: DocMemory
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